Why am I getting an error stating 'Stop loss should be less than limit price'?
The error 'Stop loss should be less than limit price' is a protective measure ensuring your trades are logically consistent. When placing a Buy order:
- Limit Price: Represents the maximum price you're willing to pay for a stock.
- Stop-Loss: Acts as a safeguard, setting a price to sell the stock if it starts moving against your expectations.
Given this, it's important that the stop-loss (selling price) be set lower than the limit price (buying price). For instance, if purchasing 100 shares of SBIN Ltd. at a limit price of ₹500, setting a stop-loss at ₹480 ensures you'll automatically sell if the market price dips below ₹480, protecting against potential larger losses.
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